As businesses navigate the uncertainty following the Government’s Get Britain Working announcement and the post-Budget fallout, one thing is clear: there is a need for innovative solutions to address a trend of under-employment within the UK jobs market.
With National Insurance (NI) tax increases adding pressure for most businesses, apprenticeships stand out as a win-win for both employers and job seekers.
The recent rise in NI contributions has left many businesses searching for ways to manage costs without sacrificing growth, but apprenticeships present a compelling opportunity, as employees under 25 enrolled on to apprenticeships are exempt from NI contributions.
For employers, this exemption translates into tangible savings and investment in future talent. It’s a financial incentive that aligns perfectly with long-term workforce development goals. Yet, many businesses remain unaware of this advantage or fail to leverage it fully.
One major hurdle is the persistent misunderstanding that apprenticeships are only an opportunity for school leavers. While they are a great entry-point into an industry, apprenticeships provide training options up to degree-level qualifications. For example, hiring a 17-year-old apprentice and keeping them in structured training could mean up to eight years of NI relief for a hospitality business – all while cultivating a skilled and loyal workforce.
There also remains a surprising lack of awareness about some of the positive policies which have been brought in to democratise training and development while making apprenticeships more accessible for businesses.
Levy transfers are a way in which smaller hospitality and catering businesses can cost-effectively upskill staff, and for larger organisations to fuel future industry talent and investment.
Large employers with unspent levy funds can transfer up to 50% of their annual funds to other businesses. By forming partnerships with larger organisations willing to transfer their unused levy, caterers can reduce financial barriers and build a sustainable talent.
In the UK there are talented people who are stuck in more junior roles than perhaps they should be, despite strong levels of life experience and transferable skills. They are held back by a lack of formal training around specific skills required to move up to management level and beyond.
Getting people into work is the focus of Getting Britain Working, but we shouldn’t forget about the need to propel workers forward through their careers to keep them engaged and help them move towards long-term financial security.
This is where the evolution of apprenticeships could support. By becoming more flexible, offering shorter and more modular courses, businesses would be able to plug skill gaps and learners could continually build on their professional development with less time commitment.
The catering and hospitality sector is a cornerstone of the UK economy, and is ripe for revitalisation through apprenticeships. By addressing barriers and shifting perceptions, we can build a talent pipeline that not only meets immediate workforce needs but also fosters long-term growth and innovation.
Employers should embrace apprenticeships as a strategy to future-proof their businesses, and policymakers need to create an environment where training is celebrated and accessible.
As the UK looks to rebuild its economy and Get Britain Working, apprenticeships are a vital part of the solution. It’s time for businesses to seize the opportunities they provide – and for the Government to ensure the system is equipped to support them.
With the right focus and collaboration, apprenticeships can be the foundation of a thriving jobs market and a stronger, more resilient economy.